Informa Telecoms & Media, leading provider of business intelligence to the world's telecom and media markets and publisher of IPTV News, has released its top ten predictions for 2010 at its annual Industry Outlook event in London.

Among the predictions made are that IPTV operators around the world will start to embrace over-the-top video and open Internet applications for their services from next year, as content providers gain access to an increasing number of ways to reach the television.  These include via open specifications such as Project Canvas and HbbTV, via connected devices such as the Xbox 360, and via initiatives within the CE industry, such as Yahoo's Connected TV initiative.

"We selected the most compelling and critical predictions from across all our research areas and these emerging trends indicate that priorities, markets, competitive landscapes and technologies are all rapidly changing," said Mark Newman, Chief Research Officer at Informa Telecoms & Media.  "We are beginning to see signs of economic recovery and predict that telecoms and media players can look forward to sustained, slow revenue growth in 2010.  However, the dominance of the Internet and the transition from hardware to software and services means that the landscape is becoming increasingly competitive and companies will need to shift their strategies and implement cost cutting measures to survive these new market dynamics."

Also included within the list is the prediction that North American pay-TV revenues will peak in 2010, and start to decline from 2012 as operators convert subscribers to triple-play bundles.  Western Europe is expected to follow a similar trajectory, with revenues peaking in 2011.

Fixed-line broadband operators are also expected to experiment with new business models in a bid to end the "arms race" of increasing speeds and declining prices, which has resulted in the emergence of mass markets for the consumption of online video and music, which other players may be better positioned to profit from.  The report adds that operators must now face up to the need to grow revenues in saturated markets.

HDTV is predicted to reach a tipping point in 2010, but platforms still need to increase channels to win over subscribers, the report adds.  For example, BSkyB offers 35 high-definition channels and the service has enjoyed successful take-up.  Other countries are also increasing their HD channel choice, but still need to win over subscribers, and the report adds that providing only a handful of HD channels will not be enough to make for a successful package.

Source: IPTV News